Princes Group delivers strong margin growth in Q3 update

Princes Group plc has reported a robust trading update for the nine months ending 30 September 2025, highlighting significant margin expansion and operational efficiency gains across its food and drink portfolio.

The UK-headquartered company, which recently listed on the London Stock Exchange, continues to execute a strategy focused on profitable growth, disciplined portfolio management, and synergy delivery following its acquisition by NewPrinces in July 2024.

Despite a deflationary pricing environment affecting core raw materials, Princes delivered a 51.5% year-on-year increase in EBITDA to £111.1 million, with EBITDA margin rising to 7.8% from 4.9% in the same period last year.

Margin gains were particularly strong in Italian products (+590 basis points), as well as the foods and drinks business units (+170 basis points each). Underlying free cash flow reached £136.5 million, supported by tight working capital discipline and supplier management.

CEO Simon Harrison described the period as a milestone for the Group, citing improved earnings quality, enhanced efficiency, and strengthened commercial partnerships.

“We are building a resilient, margin-accretive and customer-led business with a clear path for sustained growth,” Harrison said. “Our M&A and integration capability, along with the firepower we now have as a group, is creating exciting opportunities to pursue value-accretive acquisitions.”

The Group’s synergy programme continues to deliver results, with £74.3 million in net working capital improvement and a notable increase in days payables outstanding to 68 days. Operational efficiencies, improved pricing discipline, and the exit of low-margin foodservice and private-label contracts have helped sharpen the Group’s focus on earnings quality.

For food and drink producers, Princes’ performance underscores the importance of strategic portfolio management and innovation. The Group is expanding its presence in B2B channels, which saw 10% year-on-year growth, and is preparing to launch new products and refreshed ranges in core categories such as oils, Italian, and foods over the coming quarters.

Revenue for the period stood at £1.4 billion, with the UK remaining the largest market at over £1 billion. While topline figures reflect the impact of deflationary pressures, the Group’s emphasis on margin and cash generation positions it well for long-term value creation.

Looking ahead, Princes remains confident in meeting its full-year targets and medium-term ambitions, which include organic revenue growth above 3%, EBITDA margin improvement to 9%, and return on capital employed exceeding 20%. The Group also aims to generate £1–1.5 billion in incremental revenue through targeted M&A while maintaining leverage below 2.0x.